February 18, 2015
Mitsubishi Corporation and Nissin Foods Holdings Enter Strategic Alliance
Partnership to allow equity participation in Nissin Foods HD's instant noodles businesses in Singapore, India, Thailand and Vietnam
Mitsubishi Corporation (MC) and Nissin Foods Holdings Co., Ltd. (Nissin Foods HD) have entered a strategic alliance that will allow MC to hold a 34% voting interest in Nissin Foods HD’s local instant noodle operations in Singapore, India, Thailand and Vietnam.
Under New Strategic Direction, the company’s current corporate strategy released in 2013, MC is seeking to expand in the Asian market by forming alliances with leading companies, and has since been steadily increasing its business involvement in the region. Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable MC to establish food processing and manufacturing as one of its core businesses overseas. In partnership with Nissin Foods HD, a pioneer in the instant noodles industry, MC will leverage its vertical integration business model expertise – from raw materials procurement to sales - to enhance its overall corporate value in these four Asian markets.
Considered a “global food” from the outset, the market for instant noodles has continued to grow, with over 100 billion instant noodle meals sold worldwide in 2012. Much of this volume is accounted for by emerging markets in Asia such as India, Thailand and Vietnam, and demand in these three countries alone is expected to see significant growth. With MC joining Nissin Foods HD’s management team, the partnership will draw on its combined strengths in development and production and on Nissin Foods HD’s strong global brand to pave the way for opening new markets and increasing market share. The move also lays a solid foundation for expansion in Singapore, where Nissin Foods HD already commands the largest share of the market.
A rapidly diversifying food culture in emerging countries also presents opportunities for the creation of new instant noodle products to meet evolving customer needs in each respective market. In this context, MC’s goal is to develop and deepen its strategic alliance with Nissin Foods HD in these four countries, as both companies seek to expand business in Asia.
Main Instant Noodle Consumer Countries and Nissin Foods HD’s Overseas Expansion
A Breakdown of MC’s Participation in Nissin Foods HD’s Overseas Operations
Nissin Foods Holdings Co., Ltd.
6-28-1 Shinjuku, Shinjuku-ku, Tokyo, Japan (Tokyo Headquarters)4-1-1 Nishi-Nakajima, Yodogawa-ku, Osaka, Japan (Osaka Headquarters)
Date Established: 1948
Capital: 25,122 million yen
As “EARTH FOOD CREATOR” as its group philosophy, Nissin Foods HD not only produces instant ramen, but also chilled noodles, frozen foods and sweets, cereals, lactic acid beverages, and a range of other products. With overseas activities expanding in recent years, Nissin Foods HD is rapidly growing as global company.
Financial Institutions, 24.51%; Foreign Corporations, 18.48%; Nissin Foods HD 6.17%; Other Corporate Entities, 39.14%; Individual Investors and Other Entities, 11.70% (consolidated, as of March 31, 2014)
Operating Transactions: 41.76billion yen (consolidated, as of March 31, 2014)
Number of Employees: 8,357 (consolidated, as of March 31, 2014)
Representative: Koki Ando, President and CEO
Headquarters: 2-3-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
Year Founded: 1950
Capital: 204 billion yen
Mitsubishi Corporation (MC) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
Operating Transactions: 21.95 trillion yen (consolidated, as of March 31, 2014)
Number of Employes: 68,383 (consolidated, as of March 31, 2014)
Representative: Ken Kobayashi, President and CEO
Inquiry RecipientMitsubishi Corporation
Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705